Concerns over inpact of incomes squeeze as business investment shows no growth in second quarterSpending by British consumers is growing at the weakest rate in almost three years, as households squeezed by rising prices tighten their belts. “Instead of getting match-fit for Brexit, business investment is sat on the bench and the economy is sliding towards the relegation zone,” she said. Although weaker consumer spending is worrying in the short term, it could allay fears over households continuing to spend on credit cards, potentially building problems for the future. Anna Leach, the head of economic intelligence at the CBI, said: “Retail sales have cooled as higher inflation continues to squeeze consumers’ pockets. Looking ahead, firms do expect sales growth to recover, but the pressures on household budgets are set to persist, given little sign of wages picking up.”

Source: The Guardian August 24, 2017 09:58 UTC